India has very low exposure to the current European debt crisis. The reasons for that are: India’s export to GDP ratio is much lower than that of other Asian countries,so a slowdown in world trade due to European slowdown has little affect India’s financial sector has almost no linkages to the sovereign debt of the […]

The rush to safe haven assets today was frightening to say the least.As I write this VIX went up by more than 50% while Yen is up more than 5% .10 year Treasuries have recovered from 3.29% yield to 3.41% yield beginning at 3.59% and the US markets have recovered from down 8% to down […]

Markets are dropping like a rock. Went down more than 4% in less than a minute.Seemed like that the whole financial system was unravelling. The European problem that has been festering over the last 2 weeks suddenly seemed to hit the market in full force and weight.Euro is dropping like its a sub-Saharan currency while […]

Recent newsflow from China suggest that the country’s real estate market is poised for a sharp slowdown and the heavily controlled financial sector is sitting on huge piles of NPAs which are as yet undeclared.While I don’t think a crash will happen in China , I feel more certain that the stellar growth in China […]

The growth in income disparity around the world is striking.The internationalization of capital and trade has led to increasing amounts of income for the top percentiles of the world population while the bottom percentiles share of income continues to decline.This has not only been happening in developing countries like Russia,India ,Egypt but also in some […]

The politicians keep saying that the sovereign debt fears related to their country are a complete hogwash but these fears keep coming true with nasty regularity.Dubai’s leader at an investment conference 2-3 months before the crisis said he had nothing to fear before the debt crisis reached a peak for Dubia.Same thing happened with Greece […]